Market Updates

Weekly Economic Update: October 31, 2022

• Yields finished the week lower with the two-year Treasury note falling by nine basis points to 4.41% while the five-year note decreased by sixteen basis points to 4.19%

• GDP advanced by 2.6% in the third quarter of 2022 which appears respectable on the surface however, growth was largely influenced by an outsized print in net exports that is highly unlikely to be repeated

• Ignoring the narrowing trade deficit, underlying GDP data shows an economy decelerating quickly as consumption fell to 1.4% from the previous quarter and as the housing market continues to seize with residential outlays falling 26.4% over the quarter

• The FOMC meets tomorrow and Wednesday where another 75 basis point hike of the Fed funds rate is nearly certain and as investors eagerly look for any signs that the Fed will begin to slow the pace of their ongoing tightening campaign

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